Most accountant and auditor positions require at least a
bachelor’s degree in accounting or a related field. Beginning
accounting and auditing positions in the Federal Government, for
example, usually require 4 years of college (including 24 semester
hours in accounting or auditing) or an equivalent combination of
education and experience. Some employers prefer applicants with a
master’s degree in accounting, or with a master’s degree in business
administration with a concentration in accounting.
Previous
experience in accounting or auditing can help an applicant get a job.
Many colleges offer students an opportunity to gain experience through
summer or part-time internship programs conducted by public accounting
or business firms. In addition, practical knowledge of computers and
their applications in accounting and internal auditing is a great asset
for jobseekers in the accounting field.
Professional recognition
through certification or licensure provides a distinct advantage in the
job market. CPAs are licensed by a State Board of Accountancy. The vast
majority of States require CPA candidates to be college graduates, but
a few States substitute a number of years of public accounting
experience for a college degree. As of early 2003, based on
recommendations made by the American Institute of Certified Public
Accountants (AICPA), 42 States and the District of Columbia required
CPA candidates to complete 150 semester hours of college coursework—an
additional 30 hours beyond the usual 4-year bachelor’s degree. Another
five States—Arizona, Minnesota, New Mexico, New York, and Virginia—have
adopted similar legislation that will become effective between 2004 and
2009. Colorado, Delaware, New Hampshire, and Vermont are the only
States that do not require 150 semester hours. Many schools have
altered their curricula accordingly with most programs offering masters
degrees as part of the 150 hours, and prospective accounting majors
should carefully research accounting curricula and the requirements of
any States in which they hope to become licensed.
All States
use the four-part Uniform CPA Examination prepared by the AICPA. The
2-day CPA examination is rigorous, and only about one-quarter of those
who take it each year passes every part they attempt. Candidates are
not required to pass all four parts at once, but most States require
candidates to pass at least two parts for partial credit and to
complete all four sections within a certain period. Most States also
require applicants for a CPA certificate to have some accounting
experience. In May 2004, the CPA exam will become computerized and
offered quarterly at various testing centers throughout the United
States.
The AICPA also offers members with valid CPA
certificates the option to receive the Accredited in Business Valuation
(ABV), Certified Information Technology Professional (CITP), or
Personal Financial Specialist (PFS) designations. The addition of these
designations to the CPA distinguishes those accountants with a certain
level of expertise in the nontraditional areas in which accountants are
practicing more frequently. The ABV designation requires a written
exam, as well as completion of a minimum of 10 business valuation
projects that demonstrate a candidate’s experience and competence. The
CITP requires payment of a fee, a written statement of intent, and the
achievement of a set number of points awarded for business experience
and education. Those who do not meet the required number of points may
substitute a written exam. Candidates for the PFS designation also must
achieve a certain level of points, based on experience and education,
and must pass a written exam and submit references.
Nearly all
States require CPAs and other public accountants to complete a certain
number of hours of continuing professional education before their
licenses can be renewed. The professional associations representing
accountants sponsor numerous courses, seminars, group study programs,
and other forms of continuing education.
Accountants and
auditors also can seek to obtain other forms of credentials from
professional societies on a voluntary basis. Voluntary certification
can attest to professional competence in a specialized field of
accounting and auditing. It also can certify that a recognized level of
professional competence has been achieved by accountants and auditors
who have acquired some skills on the job, without the formal education
or public accounting work experience needed to meet the rigorous
standards required to take the CPA examination.
The Institute of Management Accountants (IMA) confers the Certified Management
Accountant (CMA) designation upon applicants who complete a bachelor’s
degree or attain a minimum score on specified graduate school entrance
exams. Applicants, who must have worked at least 2 years in management
accounting, also must pass a four-part examination, agree to meet
continuing education requirements, and comply with standards of
professional conduct. The CMA program is administered by the Institute
of Certified Management Accountants, an affiliate of the IMA.
Graduates from accredited colleges and universities who have worked for
2 years as internal auditors and have passed a four-part examination
may earn the Certified Internal Auditor (CIA) designation from the
Institute of Internal Auditors (IIA). The IIA recently implemented
three new specialty designations—Certification in Control
Self-Assessment (CCSA), Certified Government Auditing Professional
(CGAP), and Certified Financial Services Auditor (CFSA). Requirements
are similar to those of the CIA. The Information Systems Audit and
Control Association confers the Certified Information Systems Auditor
(CISA) designation upon candidates who pass an examination and have 5
years of experience in auditing information systems. Auditing or
data-processing experience and a college education may be substituted
for up to 2 years of work experience in this program. For instance, an
internal auditor might be a CPA, CIA, and CISA.
The
Accreditation Council for Accountancy and Taxation, a satellite
organization of the National Society of Public Accountants, confers
three designations—Accredited Business Accountant (ABA), Accredited Tax
Advisor (ATA), and Accredited Tax Preparer (ATP)—on accountants
specializing in tax preparation for small- and medium-sized businesses.
Candidates for the ABA must pass an exam, while candidates for the ATA
and ATP must complete the required coursework and pass an exam. Often,
a practitioner will hold multiple licenses and designations.
The Association of Government Accountants grants the Certified
Government Financial Manager (CGFM) designation for accountants,
auditors, and other government financial personnel at the Federal,
State, and local levels. Candidates must have a minimum of a bachelor’s
degree, 24 hours of study in financial management, and 2 years’
experience in government, and must pass a series of three exams. The
exams cover topics in governmental environment; governmental
accounting, financial reporting, and budgeting; and financial
management and control.
Persons planning a career in accounting
should have an aptitude for mathematics and be able to analyze,
compare, and interpret facts and figures quickly. They must be able to
clearly communicate both written and verbally the results of their work
to clients and managers. Accountants and auditors must be good at
working with people, as well as with business systems and computers. At
a minimum, accountants should be familiar with basic accounting
software packages. Because financial decisions are made based on their
statements and services, accountants and auditors should have high
standards of integrity.
Capable accountants and auditors may
advance rapidly; those having inadequate academic preparation may be
assigned routine jobs and find promotion difficult. Many graduates of
junior colleges and business and correspondence schools, as well as
bookkeepers and accounting clerks who meet the education and experience
requirements set by their employers, can obtain junior accounting
positions and advance to positions with more responsibilities by
demonstrating their accounting skills on the job.
Beginning public accountants usually start by assisting with work for several
clients. They may advance to positions with more responsibility in 1 or
2 years, and to senior positions within another few years. Those who
excel may become supervisors, managers, or partners; open their own
public accounting firm; or transfer to executive positions in
management accounting or internal auditing in private firms.
Management accountants often start as cost accountants, junior internal
auditors, or trainees for other accounting positions. As they rise
through the organization, they may advance to accounting manager, chief
cost accountant, budget director, or manager of internal auditing. Some
become controllers, treasurers, financial vice presidents, chief
financial officers, or corporation presidents. Many senior corporation
executives have a background in accounting, internal auditing, or
finance.
In general, public accountants, management accountants,
and internal auditors have much occupational mobility. Practitioners
often shift into management accounting or internal auditing from public
accounting, or between internal auditing and management accounting.
However, it is less common for accountants and auditors to move from
either management accounting or internal auditing into public
accounting.
Email This Page!